good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen. andrew ross sorkin is still on vacation. he's off for the week. we have a busy day on the economic front. joe just mentioned the adp report due out at 8:15 eastern time. full forecasters say the economy probably added around 173,000 barrels last month alone. we will preview friday's government report. we have international trade coming along with productivity and cost. at 10:00 a.m., we get new home sales and ism nonmanufacturing. finally this afternoon we have the fed's beige book. 21 of the 30 dow components actually declined yesterday. the blue chip index dropped for a third straight day. this was a little bit of a drop because, again, three days in a row we haven't seen anything like that in several months. if you're wording about investor

securities, the gauge rode to a six-week high. this morning, u.s. equity futures are indicated up slightly, up by about seven points. s&p futures down by over a point. nasdaq up about a point. and the ten-year note, this is what we've been watching so closely. the ten-year note at some point is yielding 2.8%. >> exactly. >> that's been driving the direction for a lot of these things. moving up yesterday was around 2.78. but 2.8 is where people start to sit up and take note. >> just under 16,000. vix at 14. ten-year, 2.8%. i'm not ready to say anything yet. are you? >> no. but you wonder, if you looked at november every time there was a dip, people jumped in and bought. that's not happening. >> no, no, bring that last one back up. we can't say anything. look at that. does that look any different than anything else? >> you know what's weird, is the dow had its biggest -- >> look at those others.

>> i know. but we've gotten so used to gains. >> look at september, look at all, look at june. >> down, slightly back up. the dow had its worst day since november 7th. >> let's do our job. let's really get people thinking, wow, markets have been crap. >> it hasn't been, but -- >> three days -- >> are you going to see -- december tends to be the strokest trading month. >> it may not be. >> it may not be this year. but we've had strong days coming up to this point. >> gasoline prices should have helped. terry lundgren is selling stuff. >> and everybody online is selling things. that was up 20%. i don't know if we're measuring things properly. >> there should be an overall -- if you add them altogether, it

should be above last year. >> never actually had a down year. have we? >> you know, that's a really good question. i want to go back and look. i can look at 10 or 12 years at a time. i'll check that out. i don't remember a down year, but let me go back and double-check that before i say it. >> i have asked many times. i see we're going to talk about something that john williams said. do we have anything? anything? >> there you go. >> thank you. fed expectations are obviously playing into recent moves. in an interview yesterday, san francisco fed -- oh, it's not -- oh, never mind. san francisco -- why would the other guy be talking about the fed, anyway? san francisco fed president john williams argues that the central bank needs to be more aggressive in providing detail on what would eventually lead it to raise interest rates. wow. really? he says this will help prevent uncertainty among investorses to rile markets.

they're all doing back flip toes switch us from bond buying to language for how long we stay at zero. god, you must sit there and say let's do this altogether and we're all just like, you know, are we idiots out here? they manipulate us. they came to the conclusion that that is what they need to do. and they're all on board. williams suggested that the fed needs to do more to convince investors that rates will stay low long after the fed stops buying bonds. >> we knew this story. >> but they're all on message. it will probably get worse when janet yellen is there. >> that's the question, can you convince the consensus when you have a lot of people with differing ideas. >> with bernanke, if he yelled at me -- bernanke brings consensus. >> if yellen got mad at me and started pointing her finger at

me, i would shut up. really? there is someone who can make you shut up? >> yeah. well, i don't know. i might be going -- if she turned away. but yeah, i would pretend to be. but i think she could be -- you know, you wouldn't want to get on her bad side, i would think. >> he seems collegial. but that was one of the best things about him from people that were on the inside say he was very good at building consensus around the table. the question is can yellen do the same. >> right. i'm scared of you. >> no, you're not. >> a little bit. >> no, you're not. >> scared of andrew. >> no, you're not. beyond stocks and bonds, the other big story is oil. opec is meeting in vienna. iran has they have plans to up the output of a million barrels a day in the middle east. opec production targets are

expecteded to remain unchanged at $30 million a day. steve sedgwick is at the meeting and joining us in the last half hour. the big story yesterday were oil prices because they were up significantly. crude oil tops $96 after it jumped over $2. that was the biggest up day in about 2 1/2 months. it settled at the highest level since october 31st. 1.14 to 97.18. so yeah, all of these gains that we got. a lot of it is coming from this opec stuff, the idea that iran and iraq are going to produce more and that's going to bring a lot more supply. >> that should go down. >> you're right. >> the weather. i don't know. there's a blast of cold air coming. >> wouldn't that affect natural gas more than crude oil? >> no, i think crude -- you see the oil markets move on crude

oil. corporate news, jcpenney november comps rose 10.1 is%? i guess from a low base. that was is second straight month of same-store gains for the retailer. jcpenney says aggressive discounts and the return of some in house brands brought back some shoppers at the start of the holiday quarter and that caused shares to go up a little, back above $10 a share now. is it possible we'll look back at $5 or $6 and say where were we? why didn't we do it? and it says here, tis the season. is that a word? 'tis? >> it is. >> >>'tis the season, "wall street journal" is reporting inventories are standing faster than clothing stores want. abercromb

abercrombie, gap, victoria's secret acknowledged inventory levels are rising. but they call the levels appropriate. that's what they're saying, anyway. meanti meantime, an an lit reports there are mixed signals about what kind of year this is going to be for consumers and retailers at this point. dennis kozlowski, who was sent to prison eight years ago for looting a company is being released. a new york state parole board tentatively agreed to release him next no. he was once dubbed the poster boy for corporate greed. you bought a $6,000 shower curtain. remember the pictures? >> i remember him and the -- >> these are scenes from that

party. and the vodka was coming out of a guy's unit, frozen. i don't know if i'd want that drink, really. i mean, he lost his wife. talk about a shakespearean fall, from as high as you can possibly get to as low, to being in prison for that long, i don't know if i'd have any further comment on -- >> eight years. >> eight years. and he definitely comingled -- i guess -- i'm not speaking in legal terms, but he seemed to think that shareholders money somehow was his to use. but it was during a period in corporate america where he was doing roll-ups and he was creating a mint value for shareholders, he thought, at the time with tyco as they acquired and rolled up all these different endties.

a and, you know, you can't put someone in jail just for greed. unlien liken ron -- >> he was using company money. >> but a lot of guys were. some people still have great reputations. >> that's why you set the bar by saying -- the prosecutors looked at him and said we're going to make an example of him. >> she visited him once. >> just to see she was going to divorce him. >> he didn't offer him. he mu dug very deep to be able to even get up every day. i'm not ready to kick him at this point. >> no. eight years, it's done. in washington news, all street banks will get a decision about the fate of the volcker rule next week. the rule deals with the controversial deal on banks

setting with their own money. it is expected to be passed, but the big banks are waiting to see how much the rule has changed from when the watchdog first proposed it two years ago. time for the global markets report. with ross westgate. standing by in london. got a lot of mail and twitter yesterday. my question was, do you wear anything under a kilt if you are a man. and the way i said it was is anything worn under your kilt and you said, no, it's all in working order, as if something -- i was asking you if something was worn down or inoperable or old or useless or sue p superfulous. basically, that's not -- if i wear a kilt, i'm going to wear spanx. can you wear spanx with a kilt?

>> you don't have a -- >> i don't have much of a turn. >> no. >> so you're saying just go free balling with the whole -- >> i was going to say commando, but okay. >> all right, ross. with that intro -- >> the key for a kilt, joe, is you've got to have stocky legs. >> uh-oh, no. mine aren't bad because i run. they're not bad. they're not bird legs, but they're not -- >> okay. >> no one goes, wow, he was a linebacker or anything. that's a football term. how about you? you got some stocky legs? that's why you can wear that -- >> not really. but they work better with a kilt, i think. the other thing is, the kilt comes down to where the stocks finish, the hem of the kilt comes down to meet the stocks. so theoretically, you only see a little bit of leg when you're walking quickly or if there's wind or something, if you know

what i mean. >> you're known to show a little leg, in other words. >> no. the kilt comes down to the knee. that's what you should be doing. >> that's good. >> we'll talk more about this, but -- >> no, we won't. >> right now let's bring you up to speed with the dow jones stoxx 600. five to four decliners outpacing advancers at the moment. lots coming out stateside as we know today. the breakdown of the pmis show a sharp divergence in the eurozone between germany and france in particular. german composite pmi, french reading at 48 is in contraction. in fact, it's only been twice above 50 in the last 21 months. italy is still deep in contraction, as well. those two countries account for 40% of gdp. spain, on the other hand, is in expansion with this activity, proposing a real dilemma for the ecb as it looks at increasingly healthy economy. and an italian economy that is now facing 10 quarters of

contraction. but stocks are fairly flat. take a look at the sector breakdown. you'll see banks and financials are the weakest here. we've been more fines just being announced for the european commission for the those banks involved in fixing in libor and yen libor rates, as well. eight institutions took part in this and six have been fined a total of 11.7 billion euros. deutsche down about 1% today. it's bag a total of $725 million euros. rbs is paying a total of 391. it colluded in both of those, as well. socgen was involved. jpmorgan and citi fined a total of around $80 million and 70 million republspectively. but these guys are paying out more money. back to you.

>> so we will see him, right? so plan on that, ross. >> we'll sigh you in a month, i guess. >> you'll be there. the last time i saw ross, we had dessert together. we skipped the meal and went right to dessert. literally. my family was there. he picked me up -- i'm not saying anything -- not that there's anything wrong with that. but we went to the eye. i was barely able to eat after having been on that thing. but then we went -- >> ewe. >> usually we get together for drinks in davos. >> joe, are you going? i'm not going this year. >> what? >> that's why. >> why? >> because joe is. okay. >> i've been saying all the time that's one of the best parts about it is getting to hang out with you. >> well, look -- >> you're right. we don't want it to be all about

sex appeal for cnbc. if both of us went, i don't think we'd get -- we wouldn't get anything done. we shouldn't be in the same place, right? there would be no snow. >> we can't be in the same place because some people think we're the same person. i don't know how we're doing this. this is magic. >> this is magic. >> ross, that's incredibly dis appoi appointing. >> we'll talk. maybe you can't leave the country now or maybe you're not allowed in switzerland now. >> i've been going for over a decade. so there comes a point when somebody else gets a turn. >> oh, somebody else gets a turn. oh, boy. okay. >> becky has been before. becky has been. andrew has been. joe now you're going. >> i'm worried about the stockholm syndrome. >> he's afraid he's going to turn into -- >> you're in switzerland, it's

okay. >> ross, we will continue this conversation off air and we'll see you back here again tomorrow morning. in the meantime, with three weeks until christmas, this is historically the season for a bullish view on the markets. can we expect a strong santa claus rally this year? joining us now is lou brien, strategist at wdi trading group. chief johnson from asset management. lou, three days in a row of down days. it is making people start to wonder, have we seem is gains for a year? >> we have had a santa claus rally all this week. the market does have to trade even though the fed is there debting our fact. i do think the interesting factor is the fed and, you know, after we get the unemployment

report on friday, depending on where that unemployment rate is, the fed may be able to say to themselves, if not publicly wrb that the cumulative improvement in the labor market since they began the qe back in september is 2012 is enough for that part of the equation. but they also have to figure is it going to continue? and that's something that they have to guess at. so will they be willing to guess and make a move in december if the unemployment rate falls to 7.1% or 7%? i think it went up last month. that was affected by the government shutdown. as opposed to the nonfarm payrolls which were not affected by the government shutdown. so, you know, i think that extra factor, will the fed begin to taper or not, is something that may weigh on the market for the next couple of weeks. and like i say, we've come pretty far already this year. can we go further if the fed does nothing? i guess. the market has always reacted very well up to the bitter end

of the previous two qes. >> jim, that brings us to the point of how the market will react if the jobs number on friday is stronger than expected. normally you'd say, that's great news, the economy must be recovering, we want to say people getting back to work. but will there be a knee jerk reaction that says the fed may come in and start tapering in disease. what do you think? >> there has been typically a negative reaction to any of the strength in the economy and everyone worries, what is the fed going to do? but the market resumes its upward track. why is that? the crew is in third quarter earnings in the s&p. it's start to go move up. the world is getting stronger outside the s&p. the s&p isn't u.s.-sent rick any more. and the capital markets sell a lot of goods overseas. >> we've had a lot of people coming in and saying maybe u.s. stocks aren't the place to be. but you bring up a good point in that the s&p is selling to a lot of those overseas markets, anyway.

>> exactly. and you can access that kind of resurgence outside the u.s. by owning a lot of big cap companies when created a pretty steep forward pe discount to the market as a whole. >> lou, let me ask you this. people have been wondering the fed could start tapering in december. but there's been this thought that i've been hearing recent think from that people that look, maybe yell.comes in and she doesn't want to make decision right away. she doesn't want to look like trichet being in a position of moving rates one way and having to reverse course in a very quick order. so could that mean that the fed could wait even longer because yellen is going to want to make sure that her first move is not a mistake that she has to reverse? >> i mean, i guess that's possible. that might be one of the advantages of doing some kind of a taper in the december meeting should the labor market look decent in the number that we get later this week. you know, i think that, you know, yellen believes that the

forward guidance, the stuff that joe was talking about earlier, is the more effective way to go on, you know, for fed policy than is the qe. i think that they would say that the qe has been effective. i think the argument, though, is sort of trying to prove a negative, that we would have been worse off without qe. one of the examples is that the pce, that inflation measure will get friday along with the jobs data, we get that spending and income number. and we're looking for the headline pce to be 0.7%. the core to be about 11.1%. and that's with five years of qe behind it. so i guess the argument is, you know, that where would we be, you know, for the economy, for inflation if we were not doing qe. but i do think that she would rather to forward guidance, she thinks that the fed funds rate and pushing that, you know, first move or any moves out further is a better way to go as

far as sending signals to the market than is qe. so i do think that, you know, if they have the opportunity, if they believe they have the opportunity, if they make the guess things are going to go all right, they can to things as early as december. >> jim, why do you think oil prices were up yesterday, they're up against this morning. >> if this is temporary and there's strength, the pmis out of asia and china are better. but we have iran and iraq coming on with more supplies. the u.s. is doing fine with energy. so the trajectory of energy is going to be flat and that's going to help the u.s. consumer. so i would look at that as a positive story. this is a temporary blip in oil right now. 97.is the blip, not the $92?

>> that's right. >> jim, lou, thank you both for joining us this morning. we'll see you again soon. >> thank you. coming up, why ubs is giving brokers higher expense accounts. plus want kfc fights to regain son assumers in kline na. this is a weird one. if advertise upons have end pd hi honey, did you get the toaster cozy? yep. got all the cozies. [ grandma ] with new fedex one rate, i could fill a box and ship it for one flat rate. so i knit until it was full. you'd be crazy not to. is that nana? [ male announcer ] fedex one rate.

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. >> these are spartan conditions over there, aren't they? >> the last time i was there, i was in a -- >> the best place in davos. >> and the last time i was there, i was in a single bed. a double wouldn't have filt in the room. that was an upgrade because the last time i went i was in a murphy bed that pulled out of the wall. >> is this living? >> it's a beautiful, beautiful town. it really is. the alps are pristine, it's a gorgeous skiing town. i think they look at it as -- >> so that means you can't have

a decent bed in your room? >> it's rugged. it's part of enjoying the absolute beauty of the place. >> welcome back to "squawk box." it's time for a check on the national weather forecast for the weather channel's alex walla wallace. try getting alex in one of those cots over there. is it too much to ask, alex? what is with europe? even a queen sized bed. something. >> it's a month and a half away and you're worried about that? >> yes, i am. sorry, alex. it's getting cold, right? >> it certainly is. it's going to remain cold for a lot of the nation over the next few days. the cold is helping produce snow through the northern plains as well as the upper midwest. we've seen around duluth already a foot of snow since the midnight hour. we've got more to do with today. there's the cold in place in the west and that is going to work towards the south as we head on through this mid and end of the week. now, as that cold air settles in, moisture will be working north.

cold and moisture, that means wintry weather. we're going to see that coming back into the southern plains in texas. tomorrow there will be a stripe of sleep as well as the freezing rain. little rock, as well. could be quite dangerous here for travels as we work our way towards the end of the week with all this wintry weather coming back into the southern plains. so watching it very, very closely. back to you, becky. >> let me just say, alex, colorado is expected to get a bunch of snow, isn't it? >> yes, absolutely. looks like they're going to be generally now maybe about a foot, a foot and a half in some of the higher peaks in colorado. good for ski lovers. >> you talk about oh, it's beautiful in davos. two words, in colorado, ritz carlton. what's the difference? it's beautiful. it's beautiful outside. >> you are so spoiled. >> all right. i'm spoiled because i want a bed that i can't roll out of in the middle of the night.

>> you'll be so tired you won't move. >> on to the carpetless floor. >> i don't think there was carpeting on the floor. >> come on! >> i'm just going to enjoy torturing you for the next month and a half. >> like a wood tile floor? >> and there's no running water, either. >> i believe that because there's no shower curtain. >> i'm going to harass you endlessly. you're so easy. >> i know. okay. >> right now, it's time for the executive edge. it is a daily segment focused on giving business leaders a leg up. yum brands is still trying to win back diners in china. its websitee trumpets the sloga trust in every bite. reuters is reporting that interviews with chinese consumers suggest rather than soothing consumers, they're being reminded about the issue

in the first place. the whole thing happened in december 2012. we've gotten november numbers. those november same-store sales were flat because of the big promotion in the first half of the month. you have to wonder what happens when they go up against the same comps from a year ago. they probably have good comps in december. >> you're not an advertising person, right? did you see the campaign? >> i did. trust in every bite. >> i know you're thinking this might kill you, but you can trust that this will not by poisonous. that's a weird -- >> it is. >> i don't know how to appeal t. >> that's what i wonder. a lot of stuff discuss translate cross-cultural. >> and i understand people hate additives and stuff like that. but they're worried about having

antibiotics in the chicken. what does that imply? that's not going to hurt you, i don't think. is it implying that the chicken need today antibiotics or something. >> it costs money to put all of those antibiotics in. >> i think they don't want -- because they had the baby formula and all that other stuff. i don't think they like any contamination of food. >> and there are contamination stories in china. there was an outbreak in bird flu right after that. >> you have a choice. have some chicken that had some antibiotics or some that didn't. which would you choose? >> pizza. >> i'll take the antibiotics instead of the bacteria. wouldn't you? >> yeah. but i'm going with the -- >> i don't understand the story. >> i don't entirely understand the story, either, but i know

the bird flu reeked havoc with it, too. people get concerned about chicken. it was on the national chinese news station in december 2012. it was seen as a poor report that some suppliers were acting badly, weren't following the rules. kfc immediately jumped in and cut those suppliers out of the loop, but they've been a very hard time -- >> run, trust in every bite. we swear. >> they said that this ad campaign -- the company is defending this ad campaign saying it tested well. >> i bet they pull it. >> reuters went out and talked to a guy who was eating mcdonald's and said it just keeps reminding me. >> it seems like a -- i don't know, you're approaching it from the wrong side.

user assuming people are worried about the bite .saying, don't worry, it will be okay. i don't know if that's the point. illinois state senate advances a bill to keep adm headquarters in illinois. that news adm was seeking a new headquarters shook the area. you know, when you do small companies in illinois get a break? >> this has been my problem the whole time. >> if you're going to be anti- -- you know, if you're going to be punitive and you're going to do anti-corporate stuff and then excuse the big guys because you want them to stay -- >> it's not fair to the little guys. >> the overall effect on of being not friendly to your corporate people, some people would definitely leave. >> they have to cut some deals.

sears was a big -- >> right. but the tax revenues, whatever you get there, you're probably losing it as people leave unless you do something this. don't get me started. >> well, the governor said even though the senate passed it, the house -- >> they didn't have an auto industry or a bailout in illinois. that's purely just mismanagement of the whole pension situation. >> but it's failing to put the money in they've promised he year. there's a lot of states that promise these things and -- is. >> the whole detroit thing we'll talk about. it's a tough one because on the nightly news you'll see every retiree. they'll say, if a dollar is cut out of my pension -- >> and by the way, tier not making massive pensions. >> i know that. but right now, there's no city services. >> and detroit is a unique situation because you have seen

a loss of the people living there. you can no longer support the infrastructure that was there for 1.5 million people when you see the numbers decline. >> and the journal has a piece and it sounds cold and heartless, but if public unions are under the impression that they can shake down, you know, cities and municipal entities because the taxpayer will always cover it because it can't go bankrupt, you need to finally get them to where on the negotiating side they realize, look, this isn't something that is just endless. we need to be reasonable about what our demands are. because in the past, the only person there to protect the taxpayer is a lot of times the democrats that the union ves elected, anyway. so you've got no one there to protect the -- >> well, in the past when officials have not wanted to pay up for raises at the time, they say don't worry, we'll take care of you at the pension. 30 years down the road they're not necessarily going to be

honored all the time. it's not just the pensioners who are going to feel pain. this is every constituency. >> in the private sectors, they know if they put their company out of business, they're going to still have a job. and cities can't believe this is happening. we would be back to where every single time they're going to think, hey, we can -- >> the rest of the nation is watching what happens in detroit. it's going to be appealed. the union ves said they're going to appeal this decision. but the judge who ruled yesterday said he will not stay his decision awaiting that appeal. when we come back, we'll talk november expectations for the adp jobs report.

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welcome back, everybody. ubs is unveiling its authorization plan. it is offering broker plans to firms that produce at least $150,000. it is eliminating broker pay for client households with less than $100,000 in their accounts. experienced brokers have to produce at least 350,000 to get paid. joe, i guess that's interesting, if you don't have at least 150,000, they're fought going to pay you for it. it used to be 75,000. >> here is a move to bring up the higher net worth clients to bring in more business for the firm. >> what do you do if you've had a good client who has had 75,000 or 80,000 in your account? >> if you've been with them for ten years and your 75 hasn't

grown -- >> but what if you've taken money out to pay for college or home renovations? it doesn't seem very fair. >> you're free to go to fidelity. they can make a choice of the type of client that they want to deal with. we have a high -- the people that watch cnbc i think are probably the highest income and highest net worth viewers -- i mean, that's -- >> we don't exclude other people. >> we don't exclude them, but we don't do a personal finance story every day on coupon clipping or anything like that. you're free to -- >> ladida. >> no, cnbc started as a consumer news and business channel. that's what cnbc stood for. we do things that -- i mean, there was a show called lifestyles of the rich and famous. it got very good ratinges and people liked to watch.

if you're ubs, it costs the same amount to service someone who has -- >> you're not going to take anybody new, but by the way, if you've been with us for a lot of years, we're fought going to kick you to the curb. gee, welcome. coming up, why this morning's adp report could be even more important than normal. it's estimated that 30% of the traffic in a city

is caused by people looking for parking. that's remarkable that so much energy is, is wasted. streetline has looked at the problem of parking, which has not been looked at for the last 30, 40 years, we wanted to rethink that whole industry, so we go and put out these sensors in each parking spot and then there's a mesh network that takes this information sends it over the internet

so you can go find exactly where those open parking spots are. the collaboration with citi was important for providing us the necessary financing; allow this small start-up to go provide a service to municipalities. citi has been an incredible source of advice, how to engage with municipalities, how to structure deals, and as we think about internationally, citi is there every step of the way. so the end result is you reduce congestion, you reduce pollution and you provide a service to merchants, and that certainly is huge.

the adp report is due at 8:50 this morning. joining us now is jim solomon. we know around this time toys r us hires all these guys .there's a bunch of temporary employment. how does that factor in? >> this is for early november. it's actually -- >> is anyone hiring anyone? >> it does start in november, but there's more in december, as well. that is a question for this week's numbers. some people are speculating because thanksgiving is relatively late and it's two weeks after the sample whether that could artificially hold down the numbers this week including payrolls on friday. it's always a challenge when you get these seasonal swings this time of year. >> above expectations. >> given the shutdown and expectations because of that, it

was very good. >> and this number? >> i've got 175, so not quite as good as last month. >> for friday. >> for friday, i've got 185. last month, adp missed badly. we got 130 on adp and the payroll number private sector was 212. since moody's took over, it was the biggest miss yet. without the shutdown, it would have been flat. >> back to 7.2 now? >> probably 7.1 now. i've got 7.1 as a forecast. the trend is obviously down. we started the 10% at the peak and unambiguously when you're getting 80,000 or so a month on average, that's more than enough to keep unemployment coming down given the demographics. >> so you would think at this point that when we thought we were going into another weak period, that was another head fake? >> you know, you rolled out the

comp six weeks ago. when you were in the middle of the shutdown. some on it laet latest numbers looked pretty weak. and the perception was if anything momentum was weakening before the shutdown spt deadline saga .that would limit numbers more. and if anything, momentum was up before the shut down and the shutdown and the debt limit saga is being shaken off by the economy. >> so we went from the fed looked stupid for not tapering and then smart for not tapering. are we back to she should shut it down, anyway? the growth numbers look good, but, of course, the two exceptions here, and they're going to remain i think the exceptions until the disease meeting this week, nn one, home sales. they look like they've stalled. and it looks like they're still on the weaker side. second, the inflation is pretty tame.

later this week, we get the core number and it probably slows again from 1.1% to 1 .2%. those number res all saying the economy is chugging along okay. >> so do they taper in december or not? probably not. no, they hold off. when we come back, we have a live report from vienna where opec ministers are meeting today. but first, check out the squawk green room. joe millstein is here. wheat get his take on the current business environment coming up at the top of the hour. i have low testosterone. there, i said it.

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. welcome back everyone. ministers ameeting in vienna. we've been watching closely about the talk of who's producing what and watching as oil prices have been rising steady yesterday and today. what's happening? >> yeah. i think this is absolutely fascinating. it's a long term story, a slow burn. in 2014 we could be entering a perfect storm for oil price if everyone that promises to put production on line comes up with

the dogoods. that's shell production in the united states as well. we could be entering a situation with a lot of pressure on the down side. i spoke to the kingpin of markets. he seemed non whichchalant and relaxed. >> i have said that many times and have been public about what i said about shell oil. it's a welcome addiction to the reserves and we welcome it. >> now, he says that and yet opec conducted a study on prices. for instance, kuwait, iraq take a 20% cut on prices of oil they ship to the united states. that is a lot and takes them below the cost of production

between 80 and $90 a barrel once they have the budget concerns in there as well. shell is ramping up in 2014 which is a grave concern for saudis. what's the bigger issue? iran has a level of exports at the moment somewhere in the region of a million barrels a day. iranians see their place at top table of producers. u.s. around 10 million barrels a day as indeed are russians who aren't in opec. iranians think they can get many barrels a day. from 1 million a day now they think they can get to -- well, let's listen what he had to say about immediate exports once sanctions are lifted. >> i hope after sanctions we'll produce lifting sank immediately

we can -- after lifting the the sanctions. >> so that's the middle of 2014, hoping to produce 4 million a day, sir? >> we can technically. >> reporter: four million barrels a day from one now. that's 3 million barrels extra. let's say we got an extra a million next year. libyans can get their million back. we're up another 5 million. let's say nigerians can get production back up to 2.5, which is what they need to balance the budget ahead of presidential elections in 2015. plus iraq trying to get to 4 million a day. we've got between 4 to 5 million barrels a day. that is why the saudi and opec could be worried in 2014. >> thank you so much. we'll check with you soon. when we come back, we'll have top stories including jobs in the market. you hear the words black friday

and think about big screen televisions and other door busters. what about cars? mike jackson tells us why the day has become the biggest of the year for his industry. we'll be right back. every day we're working to be an even better company - and to keep our commitments. and we've made a big commitment to america.

bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger.

gearing up for the jobs report. the market's focus turning to adp employment rate today. what what you should expect and what feds say about the taper this month. speaking of job, what do johnny football and cognizant have in common? they're looking down field for the big play. fienld out why they're moving operations to college station tex ex. nation's largest retailer on

black friday results in the success of dodge's recent ad campaign featuring rod burgundy as the second hour of "squawk box" begins now. good morning everybody. welcome back to "squawk box" here on cnbc. i'm becky quick with bob. andrew is off this morning on vacation. after three down day, going to see the futures have barely budged. s&p 500 down just over two points. we have a busy slate of economic

numbers. they're kicking off in over an hour with the release of adp report in november. economists are looking for the report to sew 173,000 new sector jobs for november comparing to 130,000 in october. members meet to talk about production plans for 2014. it will keep the 30 million barrel ace day despite increased production plans from iraq and iran. jcpenney says sell sales jumped over 10% after two years of steady decline. >> joe. >> he was sent to prison a year ago for looting of the company for $100 million. he was charged with larceny and other charges. a parole board tentatively

decided to release him next month. he was dubbed the poster boy for corporate greed. his spending was a $6,000 somehow erp curtain and umbrella stand that was nice. a $2 million birthday party for his then wife. it was in creed or somewhere. >> somewhere exotic. >> the the party itself was pretty over the top. you can see pictures of him dancing there. >> yeah. anybody that saw pictures of him dancing will never forget that. it's scarred in most people's mien minds. it was over the top. especially for someone that visited him once in jail to serve him with divorce papers. fair weather friend. >> there will be a lot in the main stream media about the cause getting out.

we had the tyco. now they're just te. the tis the season to talk retail. inventories are expanding faster than retailers want. the the paper says abper com by and fich, gap, victoria secret acknowledge inventory numbers are rising. they call those proipt. an analyst argues inventories are rising faster than sales. a retailer yesterday said he's cautious with his brands lane bryant, justice. he said he's not optimistic about consumers bouncing back at the beginning of next year. >> the other one was bigger than lane bryant or justice. >> justice is pretty big. >> is it?

>> it is in our household. it's for tween girls. >> the other was a big lady. dress barn. that's right. that's the one that founded it. >> that's big. as we a wait the report, 8:15 we get it this morning. let's get an outlook on the economy and what moves the feds might break. bruce is editing director and chief economist. chairman and ceo of millstein is going to fix detroit and chicago for us this morning. will you think about that? >> i'm working on it. >> you should know how to do this. there's all bad options aren't there for both places? >> there's an adjustment process. problems are 50 years in the making. this is part of the country in transition. we have the industrial midwest now been caved out, hollowed out. so it's going to take time.

>> it is, but you've got a city that doesn't -- in detroit for example, the news yesterday was the judge allowed the bankruptcy. you're going to be able to tell people that had promises that your promises aren't any good. you're also in a city that has cut back and doesn't have enough money to do police and fire. >> they have a city that's shrung shrunk in population. >> what do you tell a guy who gets --? you have pension plans provide at the municipal level. a lot of people's pensions are going to be cut, health care cut. >> is it good or bad this is the precedent for being able to change commitments that public pensions make? >> bankruptcy is sort of a final acknowledgment of failure on the part of public officials and municipal unions everyone that

had a stake. >> it's supposed to bring detroit back, the only way you can down the road have it come back? does this justify the means? >> it creates a forum which people can renegotiate trying to go forward. it's going to take time. >> i do wonder. there have been questions in the past whether the federal government would step in and offer relief to pensioners who are going to be -- >> you're going to have -- the federal government is going to have a big nationwide problem. the extend the federal government will start to step in and put floor under municipal pensions is a big policy. republicans might have something. >> we'll talk about this later. we want to get bruce in. the whole idea of the way public unions are negotiating their contracts with public officials that may -- that's why people

believe we're partly in this mess. >> i'm going to come back. >> i'll give you plenty of time to think about why that's not true. we had john after he was elected talking to the public union saying we're going to get a great deal for you. he was representing the taxpayer. >> most of us will vote for more police, better fire, better sewage, better public -- do you think public employees need the protection of a union? are they protected against horrible municipal bosses? >> not like the private sector did better. you have to look to new york and the auto makers -- >> only place you have unions anymore. >> the union movement. it's starting to come back. it's sustaining the middle class in america. >> let's get to bruce about the adp report.

we've had discussions already today bruce, about whether whatever the fed saw to not taper, the shutdown didn't seem to affect the last jobs number. will this be a 200 jobs number or decent jobs number? >> we're looking for a decent number, around 180,000. fundamentally the economy sound generating job growth. there's a little bit of a tailoff partly because of the late thanksgiving which we think will hurt a little in the retail sector in terms hiring. it's going to be solid. we have them beginning the process in january. >> do we have to finally say that we had three straight swoons. remember those? did we finally get above stall speed because of intin -- infinity. >> can we get growth to break out above the 2% pace we've been

bouncing around? we think that's going to happen in the spring. the numbers are consistent with that. we've got a good impulse coming through with fed support and equity markets up. global economy is doing better. next spring we'll have the big test on the economy. what do we do in most of 2014 in terms of gdp? are you going to give me somewhere between two and three? >> touching towards three. we've been averaging 2% four years. 3% is not something if you look back all that exciting. coming from where we've been, it's an important shift up. >> we will be able to orchestrate some type of tapering next year which could imply maybe 3% on a ten year. that's not going to hurt the housing recovery and going toco.

i look at i as a balance. we get support from improving global, financial conditions bradley improved. i think you're right. higher interest rates go at the ten year level above 3%. that's going to take out of housing. we're seeing it to some degree. it's a balance between that kind of limitation we're getting and an economy with a lot of other reasons to do it better. >> okay. that sounds pretty good. we'll have an economist on if we have a lousy job friday. we'll have someone explaining why everything was bad the last couple of months. doesn't it seem like we can't get consistency on predictions? >> forecast as good hard. i appreciated that this a long time of doing it. the economy bounces around month to month. if you look through ups and downs, the economy has had a steady underlying pace of 2% this year with a lot of variation on short term.

the question is can we make the break above that in i don't care we're quite there. six months from now we'll feel like we've done that. >> bruce, it's millstein. what do you think of falling oil prices? does that have a pick up you for the economy? >> we don't forecast oil prices to go down from here. we are getting the benefit of oil prices having fallen this year. we're getting the benefit of pricing and the rest of the world. i don't think oil is a big factor going forward unless you want to forecast lower than what they are now. equities are a big factor, fiscal drag fading. those are the big drivers. corporate being cautious here watching the picture kick in. that's the call in the spring, corporates start to kick in in terms of investment. >> let's me ask you a question

about taper. feds have been buying too is it a foregone conclusion if they taper, they taper on both sides or stay in the market and back out of treasuries slowly? >> we have them doing both. there's a debate as to what the first couple of steps are going to be. if they make a decision to surprise us, it would be more on treasuries and leave the purchases of mbs in place. >> that would have a positive effect on keeping mortgage rates stable? >> that would be the hope. the guidance on keeping rates low for long, end of 2015 is going to continue to stick. that's where they had a problem in the summer. so far they've been holding that constant here. that's the central key on the market side. can they continue to guide us towards low rates as they move the tapering? >> thank you. >> thank you.

>> 8:15. adp we'll get that number. one hour and one minute 15 seconds from now. >> wow. >> no, it's only 10 seconds. >> now you it's only 9 seconds. it's coming and quickly. that would entertain people i'm sure. up next, auto nation is the latest sales. we'll talk about black friday deals. find out if ron burgundy is helping the company sell cars. a lot of people will tell you about the dodge durangos available hemi engine. i'm the only one with the guts to tell you about the glove box. .1 cubic feet of storage, light bulb, thermo plastic. comfortably fits two turkey sandwiches, hammer, 20 packs of gum, rulers. this goes on for inches.

starting to get the picture?

black friday was a big day for retailers. consumers hit the car dealershi dealerships. mike joining us now. black friday, i never thought of that being a big day to run to the auto retailers. this is one of your top five selling days? >> becky, good morning. yes, indeed it is.

this year it was spectacular with bladder friday inclufriday. you should put them together. november sales improvement of 13% year over year with 40% spike on the black friday weekend. it tells the story of what's been happening. we had a rather sluggish september and october into november. very reluctant consumer with the government shutdown. it wasn't until black friday they came back -- >> why is that? did you offer big promotions? people were just out shopping and thinking of cars? every manufacture had special promotions. we had special promotions and extended hours. everybody knew we had to get the

market going again after the government shutdown. so it was just a combination factors where we recovered the sales that had been postponed in september, october, november. everybody woke up the day after thanksgiving and said, you know, i feel good enough to go back into the marketplace and buy a car. it was a huge weekend for the entire industry. if you look at selling rate for the industry of annual 16 million 400,000 for september and october we needed a big black friday and got it. >> for the month of november up 13% over a year ago. when you have big promotions and it gets people out and brings in sales you thought weren't there the previous month, is that restarting thing or pulling forward sales that would have been coming around christmas time? where do you think the consumer

sta stand at this point? >> that's the key question, is this recovery or pull forward. in this case it's a recovery. sales were postponed in september and october. we had a selling rate over 16 million in august humming along. the government shutdown came and the consumer's confidence was shaken on all surveys. that affecting big ticket items. november's number is a recovery of what happened before. looking forward to december, i think it will be very strong. here there may be pull forward of next year's sales. there are significant tax benefits that end december 31st. i'm talking about our top five selling days. new years eve is our biggest day of the entire year. the saturday before the end of the year and new year's eve, the

last day of the year are the biggest days for us. >> why is that? >> well, i think consumers -- a lot of people receive bonuses at year end. it's big for the luxury business. i expect the luxury business to be spectacular. - a significant tax benefit for commercial vehicles that weigh 6,000 pounds. that a ends january 1, 2014. anyone in the commercial vehicle market. let's face it, the underlying factors for commercial vehicles is economy. the number will be big. in this case, there will be pull forward of next year into this december. >> mike, let me ask you about what's been happening with the dodge durango sales. we know ron burgundy anchorman

has been selling them. i've seen reports sales are up 50% after his ads. is that true? >> it's absolutely true. first the durango is an outstanding vehicle, introduced into the market and got a rather lukewarm reception from a sales point of view. was just going along okay. chrysler dreams up this ron burgundy campaign, and all of a sudden t the durango is the vehicle to have. nothing changed other than this campaign. stores up 50%. we're up overall 35% on the durango. chrysler had a big month in total. they released the new cherokee receiving a positive reception. it is interesting to see where a

marketing campaign can take what is really an outstanding vehicle that wasn't selling well and send it. >> i don't think you have an international spokesperson do you? we've come up with something we might help for auto nation sells and give you the same kind of boost. i don't know if you can see that down there. >> no, i can't. >> it's my face and ron burgundy. that's a scary looking -- you know what, on a serious note, you got this a ward which means you're a huge lead their overcame personal adversity and committed to philanthropy and higher education. you know who else got one this year? class of 2014, coty at honey well and jerry jones, owner of the cowboys. they're in great company with you.

congratulations. that's a real honor. it's a big deal for the class of 2014. >> well, thank you for saying that joe. it is an honor. i admire the ratio society greatly. they take individuals andle challenge circumstances and give them an opportunity through scholarships to change their life through education. and to join companies not only those you mentioned but most importantly our previous winner our founder. i never thought it would happen in my lifetime. >> you didn't get it yet, did you? when do they do it? >> no. the event is in april in washington d.c. >> it's a big deal. >> it's quite something. i look forward to hit. >> can congratulations. we'll check back with you on. that think about it if you see the tape. i look good in that suit. >> actually joe, when i see the ron burgundy commercial, i do

think of you. i don't know why. >> i think that's a compliment? thanks mike. >> i think it is. >> see you later. when we come back, the tool of the trade as opec meets in vienna. we'll look at area of the market traders are watching. we have stock picks from the man with the perfect last name, profit. eugene profit will be right back on "squawk box" ale announcer ] this store knows how to handle a saturday crowd. ♪ [ male announcer ] the parking lot helps by letting us know who's coming. the carts keep everyone on the right track. the power tools introduce themselves. all the bits and bulbs keep themselves stocked. and the doors even handle the checkout so we can work on that thing that's stuck in the thing. [ female announcer ] today, cisco is connecting the internet of everything. so everyone goes home happy.

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every day we're working to and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger.

. when we return, the search for the santa claus rally, tree down days in a row may have the grinch smiling. "squawk box" is back after a quick break.

welcome back to "squawk box" everybody. in our headlines this morning we are now less than an hour from the november adp report at 8:15 eastern time. it's expected to show 173,000 new private sector jobs for the month. also out today we have third quarter productivity, trade

deficit, new home sale, manufacturing index and beige book. jp morgan chase and citibank is among those assessed $2.3 billion. society general, royal bank of scotland were among those fined. sears executive has reduced the stake to 48.4% down from the prior 55.4%. investors that decided to exit lam pert's stake shares were down. >> thanks. i was going to see how much -- he's still loaded, $5.9 billion. he still has half. >> roughly, yeah. >> let's get a check on gold prices and currency levels. joining us now the bks

management, shaun is editor of the wealth report. our guest host wants to talk. can you say it? can't talk about it if i can't say it. what was the news? number in in terms of reserve currencies. >> in materiaterms of trade. the chinese economy and society itself becomes more open. it's a transactional unit. there's too much issue from property rights point of view to trust as a reserve currency. >> what about the reports coming out of the saudi arabia that they're negotiating with the chinese to pay for oil? >> that could happen. it definitely is going to take more transaction in the market. as far as just marking your

money for investment purpose, that's the ultimate trust in a currency. i think there's reservation to that effect until people feel the society is a little more open. i remain maybe the last of the die hard skeptic maybe because i was raised in the communist company. currencies are political as well as economic units of value. there's a tremendous amount of value to be associated with that as well as just the pure economic might. >> it's clear the chinese are are pushing you now to do the things you're talking about, open up the economy to allow the trading in hong kong, creating the economic zone outside shanghai you can actually transact. they're moving in that direction. >> they are. my view is i'll believe it when i see it. there's a tremendous amount of face saving type of policies to

implement without creating the full open market economy that it really deserves to be in order to create the reserve status. i remain skeptical. >> where were you as a child? >> i was born in soviet union. >> when did you move? >> 1974. actual willy the summer of when nixon resigned. my first memory of america is watching nixon resign on television. >> how did you immigrate? >> in the days when soviet jews were allowed to immigrate. >> you were allowed to leave? i think -- you say you don't remember communist rule. you leaned far left. most people that come over from there don't lean quite as far left when they get here. you were too young to realize. >> i don't really consider communist left. i consider it right at this

point. >> if you go far enough right you come back to the left side. >> i'm skeptical about china as a reserve currency. >> you're -- 1800 in the world, everyone said it would go above 2,000. what's going to happen? >> between 1100 and 100. there's a lot of fundamental things. i think she always tends to air towards that side. that would push tapering out further if it happens at all. tapering will happen sooner than it is.

ultimately this will be gold chinese have agreements happening with trade putting less fate in holding for trade. there's turmoil in thailand and ukraine. ukraine is threatening to use force. this could be a spark to help gold if they get out of hand further further. >> everybody knows all that. >> i don't know what gold trades on anymore. that doesn't necessarily trade on a weak dollar. i don't know what it trades on. >> if you think about that too, gold hit bottom last july. it has dropped but hasn't produced new lower lows. i believe all these things are about to turn the dollar. the euro is another antidollar currency. it's been rallying. i think the dollar is down in that gold will eventually turn around on it. >> wasn't russian gold the kind

of hedge against the crazy inflation people thought qe was going to produce and all the money printing was going to produce? >> it went to 1900 the minute we start talking. >> we haven't had the inflation. >> we talk about taper and it comes back down. >> i thought it was the hedge against inflation fears banned by the antiqe forces. now the bottom has come out. >> doesn't mean inflation has gone -- when you jump from a 50 foot i woubuilding you think yo flying 49 floors. you never met a stimulus program you didn't like i'm sure. >> rising gold was a reflect of rising inflation. >> as it came back down, once we realized we're not going to rush to the bottom, we'll be the first country to stop evaluating right? >> i think so.

>> the financial system is furtherest along in the repair. >> because you did the auto bailout. >> are you done? here's why this week is incredibly important. if we have good labor number, we have a virtual you cycle where the the deficit goes down and case for taper becomes stronger. if it comes down due to the growing economy. numbers will be crucial this week to see how the trade is going forward. >> in 1972 you were like two. >> i was 12. >> you were 12? >> by the way, joe, you should be the spokesperson for the fia 500. >> it's fix it again. >> careful. i know. there i am. that's not bad. i don't have a suit like that. can i borrow one of yours jim?

>> i gave that color up in the 70s. >> that's your hair come ecombe. coming up, will wall street see a santa claus rally? we have time. dow down three straight sessions. we'll find out what anymore you should be buying to put your money to work. jobs in america cognizant moving operations hub from the garden state to college station, texas. oh really? you'll be sorry. with plans to hire 10,000 workers. the man behind the firm's bold move joins us in just a you bit. "squawk box" will be right back. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help.

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take a look at oil prices. we're getting word the minister is getting word they're planning to keep the production ceiling unchanged. iraq and iran plan to sell more oil. somebody is going to have to cut production or someone is cheating on production levels they're allowed. wti crude is up another 1%

today. up to 97.11 after$97.11 after a better than two yesterday. oil closed at the highest level since halloween. it had been going down steadily. it should be going down if you think they're going to cap the production. that's assuming you think they're really going to -- >> they're not going to cut back on production based on additional -- >> they're not going to raise the ceiling. if iran and iraq were coming in the ceiling would be raised and opec would be producing more oil. they're saying they're not going to raise the ceiling meaning someone else will cut production to make up for new oil coming to iraq and iran. they can talk all they want about keeping the levels in line. >> i think they would be cheating on us. if they're limiting the cap and sticking with it -- >> i thought if there's more coming in they should cut to

keep the price where it is. >> somebody else is cutting production, they're saying, to make room for iran and iraq to fit within the production ceiling. >> they're not cutting. >> saudi says they are. they're saying opec is not going to raise the ceiling. saudi arabia says they're going to keep it where it is. >> saudi would have cut if more was coming on. by not cutting it, means more is coming on. >> you're not going toll raise levels to allow iraq and iran to be a part of that. >> they're communicating customers say they need more oil. they're not going to cut production back because there's demand for the oil with iranians producing more. we'll see. we've been talking about the stock market recent performance.

there are stocks you should be putting in the portfolio now. y eugene, you look the large cap stocks. which in particular to do you like? >> hi, thanks. i like the microsoft and intel. i'll tell you why. they haven't per formed as well in the rally in 2013. a lot of tensions have been focused on cloud and social media. when you look at the cloud, you still have to bring that down to basic infrastructure. there's no replacement for the platfo platform. you're seeing microsoft rally against the google chrome book. they don't have the operating system of office or anything but wi-fi. i think that's going to resinate with the consumer gives you down side protection. you're getting cash flow.

>> is hewlett packard another of the companies you like? >> it is. i think a pretty good turn around, strong in printers. still have desk tops. execution has been good here. new management have come back in. you've seen positive earnings. had a strong performance this year. it's coming off the low base. this is also a legacy technology anymore we're constructive on. >> that stock is rising. that doesn't concern you even though it's sitting 27.86? >> it started with the confusion over employment and harassment situation that turned out not to be the case. you've had two ceo changes. you're looking at appealing fundamentals at low price points. >> also looking at retailers now. obviously in the middle of the holiday shopping season, this is a time for focus on this. is there some winners and losers

in this area? >> absolutely. there's conflict in terms of whether or not you've had strong holiday sales starting off or if they've been weaker? if you look at high end consumer, look at tiffanys, macy's or kors. the economy is improving a little bit. on the opposite end, wal-mart is promotional. i think that's a negative imp pact on companies like target. wal-mart announced strong beginnings to holiday sales season. i think that with dollar stores, companies like target, that don't have a strong brand and luxury into the market are going to fair worse here. we're positive on tiffany, michael kor. >> great to be here, happy holidays. back to oil situations.

if iran and iraq are stepping up production -- >> everyone would have to stay the same are they producing the cap now? >> they're producing it already. i thought they were. am i wrong? i thought in order for iran -- that's been the big conflict between the opec nations. who does that squeeze? other nations have been able to increase production. >> if they're only allowed to do 30. >> i think that's where it comes down. the question is always will they cheat or not? will everybody stick by these? the main line they're towing now -- >> if they added two or three or four -- you saw iran saying they don't care if hit goes to. >> that's what iraq said too. if you want to maintain levels -- iran especially. they have a limited window on this. we have six months we know we can sell again and going to sell as much as we can in that period

of time. if saudi are saying we're going to maintain the ceiling, they're going to have to cut production. >> i don't believe any of them do what they're saying. >> that's the thing. can you keep them from cheating? >> he really likes shell. i believe everything he says. i don't think he'd ever -- >> i didn't believe that about shell either. when we come back, cognizant's hiring plans and move to texas a&m. "squawk box" will be right back. the american dream is of a better future,

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cognizant technology moves headquarters and up up operations to add 10,000 jobs over the next three years. with us now to talk on set more about the move gordon coburn, president of cognizant solutions. thanks for coming in. couple of days ago you were with one of the biggest aggie alums around, the governor. i want to read your line. i want to welcome governor perry and thank him for fostering a business friendly environment in the state of texas. that environment was a key

component in the decision to move our headquarters to college station. what are you talking about? what business friendly environment? keep in mind you have you millstein here. every point you make she's going to have rebuttal. >> joe we're expanding drama cli throughout the u.s. 29,000 employees here in america today. down in texas this week i announced we'll hire 10,000 locally over the next three years. some will be in texas, some around the country. my biggest challenge is finding enough people. when down to texas a&m, there are three things. move the u.s. operating headquarters to station. we'll continue to add jobs in new jersey. >> i felt better about that. i like new jersey. >> my question is what are you talking about? what has he done to foster the

business environment? >> when i look at the need to ramp up operation center, where i can recruit people, have an environment to build buildings quickly? >> it's regulations, weather, what? >> combination of cost of living, truly weather -- >> not football? >> partly football. >> not johnny manziel? >> the college community, state that works to work with us. >> torte reform? it's less torte reform but more an environment to do business quickly. we have to be agile. we're we have to make decisions and move quickly. this is a place for our employees to work. >> you didn't consider illinois? >> we looked at texas and felt that was a terrific location. let me be clear. we're expanding in illinois and new jersey. >> governor perry has been out and has a campaign saying bring your jobs to me.

it's not free for the state of texas. they're give ago way tax incentives to induce you to come? >> this is less about moving existing jobs. this is where we're going to put new additional jobs. texas is the place we felt we could recruit people. i've recruited over a hundred veter veterans. texas and florida are places people go to live because of low taxes. when i look at where i could recruit and retain people for growth, texas is a good place. >> is he specifically offering incentives? >> we actually decided to put the cart before the horse. we made the announcement before we finalized the incentives. texas offers incentives. we'll take advantage but that's not the reason we're moving. >> is there notion retaining corporations or retaining workers because of a low tax

rate might end up with more revenues that raising taxes? >> for the country as a whole, right. we can learn as a country they'll go to other countries if they don't -- >> we should talk about tax. >> all right. gord gordon, thank you. say hi to johnny. when we come back, we have the numbers out at 8:15 eastern time from the jobs data. every day we're working to be an even better company -

and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger. you can fill that box and pay one flat rate. i didn't know the coal thing was real. it's very real... david rivera. rivera, david. [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. [ male announcer ] this december, experience the gift of unsurpassed craftsmanship at the lexus december to remember sales event. some of the best offers of the year. this is the pursuit of perfection.

welcome back to "squawk box" here on cnbc. first in business worldwide, i'm joe kernen with becky quick. andrew is on vacation this morning. our specialist millstein. we have a climate change expert. we're minutes from the adp report. forecasters say the economy add 173,000 jobs last month. flat most the day, down 22 points after three straight down sessions. ten year note is around 2.8 most of the session. it's above that. whatever happens at 8:15 will have the impact on the yield. the number is more important. we'll bring you those as soon as it hits the tape. let's talk about the morning's

other top stories. opec said it's keeping production phoproquotequotas unchanged. this morning up 1%, 97.05 for wti crude oil prices. opec saying they will not raise production level even though iraq and iran will be produceing more. this morning the oil market looks like a believer. another dollar advance to 97.06. mortgage applications siting a fifth straight week. sharp decline in refinancing applications led to the drop. the mortgage application activity sank 12.8% in the last week. november comps rising 10.81% the

second straight month for gains for the retailer. jc p krrks pecpenney says they sales. stock up you 10.1%. in washington news, senator ed marky wants information from auto makers about security risks. he's asking companies about information on how to defend against cyber attacks and protect privacy on data collected on vehicles. a deal signed by the china technology could undermine washington defense ties with seoul senators feinstein and menende znchts a letter from the senator expressing concerns about the selection to build a broad band net work for a unit

of south carolina lg. washington has long objected expanding businesses in the u.s. this is an unusual example of u.s. politicians making an issue of the chinese companies investment offer shore. wal-mart is reportedly paying lawyers more than 30 executives in the investigation. this is an unusually high number and shows the depth of the federal probe. the doj is investigating whether wal-mart paid bribes to obtain permits to open stores there. the government is also looking into possible misconduct by the retailer in brazil, china and india. the stock market has been pulling back from record levels this week with dow closing below the 16,000 level yesterday. it has people asking if the taper is returning and how important this morning's adp job report may be. joining us, bank investment

manager in boston, and quantitative manager associates, ed. you think the number today, the market wants to see a strong number for all of this or hoping for a modest number? >> i think they're looking for a strong number. >> that's good news. >> that happened in the last labor report which was a turning point. we have accepted the fed will taper at some point in the next several months. when doesn't matter that much. it will end taping by the end of next year or early 2015. so now we're looking for more thae evidence the economy is gaining a trak. we'll likely get a series of stronger numbers over the series of several months. >> what do you think we'll look at with today's adp report and friday's big jobs report. >> i think the more important report is friday's number around 200,000. there's no question that we're in a market now that wants to see good news. good news is good news.

it's not bad news. if that leads the fed to taper purchases sooner, all the better. investors are expecting it. they need it. when you get the fed out of the market of buying long term assets it lets markets normalize. that's healthy. >> that's when you see the ten year above 2.8% today. where do you think we wind up over months if the good news comes in as you expect? >> we almost broke three just a short time ago and i think we're going to go above three next year. >> you think early next year? >> i do think you'll see interest rates will be ahead wind for stocks stocks are you discounting mechanic schism. that should put a lid on price earnings ratios. i think that's a healthy thing. they're already kind of above historical averages. the story next year will be an improving economy drives higher earnings and stock returns to

lower levels next year. >> i think you'll see -- i agree earnings will be stronger next year. interest rates will be rising. frankly by the end of next year we could be looking at 4% ten year note. that's not bad. the area i would disagree is say that's good for stock price. that would indicate earnings are stronger. that's why interest rates are going up. although pe's may not rise, you'll see earnings in the market next year. >> you don't think this is a slow or tepid recovery. you think the housing market will respond fine? >> i think you're seeing now it's not so much housing prices going up as housing starts and housing construction which has a much better impact on the economy overall. it leads to more job growth. i think that you're seeing overall demand -- >> the homes that you build too? >> you don't need to see selling

at higher prices. you need to see them sold. there's no reason to believe 4 1/2 mortgage prices are too high. you'll see that. >> margin debt at an all time high. does that worry you in the rising interest rate environment? >> i don't think so. i don't know that that's been a good indicator over time. secondly i think there's plenty of reasons to believe investors are nowhere near complacent or exuberant. there's a lot of concern when i talk to investors more nervous getting ready to jump on the train before it leaves the station. investors are reasonably calm. that's a good sign for the sustainability for a longer term rally. >> when you say nervous, does that mean one foot out the door? >> it's hard to get people to consider jumping in and especially after the big rally now. people say i missed it. i'll sit on the sidelines. it's nowhere near the psychology

in '98 or '99 this led to the growth of the bubble. >> what drives the growth? more economy, economic growth -- corporate margins are also at an all time high. >> key to next year is sales numbers. we've seen so far this year profits growing with little sales growth. the key is are we going to see sales growth next year. in the u.s. especially leading the way out of this recovery. you're going to see sales growth will pick up in the united states and start to pick up slowly around the world. i think a year from now, the economy is going to look much better not just to markets but the average person than today. >> i think we'll be surprised in part because of the u.s. where we have tremendous hint of how has, all sorts. we've been on a buying hiatus five years. we're replacing all that equipment. europe is beginning to come out

of recession. for companies that get half earnings outside the u.s., getting a turn around in europe is good news. i think we'll be pleasantly surprised by sales growth in the coming year. >> thank you for joining us today. ed, great to see you. >> coming up, breaking economic news. we'll have the november adp report when we return. we head to break. check out the "squawk box" market indicator. we're aig. and we're here.

to help secure retirements and protect financial futures. to help communities recover and rebuild. for companies going from garage to global. on the ground, in the air, even into space. we repaid every dollar america lent us. and gave america back a profit. we're here to keep our promises. to help you realize a better tomorrow. from the families of aig, happy holidays.

tonight is the night everybody. the big lighting at rockefeller center. there's the tree. it's supposed to be decent weather. rain later but not during the lighting. check it out. we'll be watching tonight. it's really christmas. welcome back to "squawk box" everybody. futures have turned lower. right now dow down over 30 points. this comes after three days of declines for the market. we were looking at the averages three straight days, longest

losing straight since october for dow. less than 100 points for the dow. it pushed dow below 16,000. people are starting to pay attention. we'll see how things get started in the opening bell. third time say charm for the space launch into orbit yesterday. meantime news from space rival blue origin space venture says they reached a milestone in the hyd hydrogen engine. it's been work on machine than a decade. it could sen orbiters to the edge of space. now in 25 seconds we'll get the adp report. leaseman a lot of times says he

has a number and it's an estima estimate. i know you have this number. i'm trying to see your face, is it eyebrow twitches. he's not giving me anything. in five seconds give tus stupid number any way. why mess around? what is the number please? >> adp rising 215,000, strong in november. october revised up also strongly from the weak 130 to 184,000. here are the numbers. estimate 178. think blew that out. the october provision plus 54,000 goods producing up 43,000. inside of that, construction and manufacturing each up you 18,000. the manufacturing number, best since early 2012 services up a strong 176,000. there's the the non farm payroll estimate that includes the private sector and the government. my guess is that may have to be

tweaked up higher. there's a bit of catchup in the adp. the october number was 204,000. joining us frphiladelphia, mark zandy. is this a break out number or playing catch up staying inside the 200,000 range? >> it's concluded to be a break out number. there's a little bit of juice from weakness in october related to the shutdown. this feels pretty good. i have to say i'm surprised how well the job market held up in the phase of the job market. it's good news going to next year. >> i wanted to pressure you on that. you could go two ways with this. say you know what, employers look through this. small business up 102,000. if the shutdown wasn't in effect, you could argue on the other hand if not for the shutdown, maybe could have been stronger. >> yeah, you know the way i look

at the data to try to understand the underlying trend is take a six month moving average of the change. if you do that, we're still even with today's number, still around 175,000-180,000. that's the monthly job growth we've been getting three years. some periods are a little higher or lower. we're in the middle. i don't think we're out of the woods yet. washington has more work to do. i'd be surprised if businesses work more progressively out of washington early next year. >> two things are interesting here. one is that this seems to be in line with the kind of growth numbers we had. we had third number gdp up. it suggested it continued into the third quarter as well. despite the low gdp number. second thing, on the federal reserve, these appear to be

numbers fed might be looking for to say hey we might as well taper into december. >> the first thing, productivity growth has been very weak. the jobs numbers have actually been stronger than what you expect given gdp. in fact year over year through the third quarter, productivity is literally 0. that's very unusual. the strong job numbers are a little with the gdp numbers. with the pick up that feels like is starting to happen, i think that will lead to more job creation. maybe not as much as we think because we may see pick up off low numbers. having said that, the key-to-tapering qe and beginning down the monetary policy is job growth above 200k. we got that in november and october. i think we need a few more months of that. if we go to next year still over

200k, that's a green light for tapering qe. probably some point next year. >> even with the numbers you wouldn't be expecting it. let me ask you, what does this mean for unemployment rate in your opinion. 7.7 was that admiration or are we going to settle into the number lower? >> i think we're going lower. 7.3 was a bump because of the shutdown. we're going back to 7.2 i think. if we're at 200k in monthly job both, that's well above what you need to get employment moving south. stable rate of job growth closer to 125k would be more like it. woe should see unemployment move steady south. that will of course argue for tapering next year and ending qe next year and also growth going into 2014 and particularly 2015. >> mark, one recurring theme we've had in discussions over

the past several months is looking for effect of obama care. you did get strong growth in that 20 to 49 employee business size. but it's less than you had with smaller businesses and with larger businesses. are you seeing any pick up, statistical evidence of impact of obama care in numbers? >> no. none. i can't see it. in terms of the job creation or for companies that are around that key 50 employee threshold, i don't see anything. of course the employee mandate was delayed. maybe companies aren't going to react. they'll wait until next year this will they start to react. i don't see it in part time employment, hourly earnings. it's very difficult to see. now, it could also be the case going back to counter fact we don't know what the world would look like if obama care wasn't implemented. that's a tough argument to make.

i just don't see it in the data. >> thanks for joining us this morning and bringing decent numbers along. >> yeah. i'm glad to do it. >> becky, back to you. >> all right. thank you. we'll see you back here soon. well done by steve and mark. >> generated above 200. >> way to go. >> you're doing it. heavy lifting. you go mark. >> he's just reporting that right? >> he's not making numbers up. he's just reporting the numbers he gets. >> that's the bls that makes it up. when we come back. earlier this week we talked about amazon and drones. there's word google is putting money in robots. in the next half hour, we see a legendary film maker of the sixth sense fame. he's going to join us to talk

about this country. we'll be right back.

you guys are missing out on commercial breaks today. google is reportedly putting money in robots. two life size robots are hanging

suspended in a corner of an office there. in the last month, google has acquired seven technology companies in efforts to generate robots. the same man that android google software is involved. why would the successful professor give up tenor at stanford? here's a hit. he says this will revolutionize this country. we'll have that when squawk returns. explorer card. i've saved $75 in checked bag fees. [ delavane ] priority boarding is really important to us. you can just get on the plane and relax. [ julian ] having a card that doesn't charge you foreign transaction fees saves me a ton of money. [ delavane ] we can go to any country and spend money the way we would in the u.s. when i spend money on this card, i can see brazil in my future. [ anthony ] i use the explorer card to earn miles in order to go visit my family, which means a lot to me. ♪

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we are just seconds away from international trade. rick is standing by in chicago. there are a lot more than a few seconds away. we rarely have time to talk to rick. i don't know where to start. >> i know. something is going on. >> i don't put anything past

anything anymore, rick, at this point. i haven't spoken to you in a week or so. that was a good adp number. are we negative do you think about the latest pause we thought was happening? these numbers are okay. >> it's not hard to be negative. come on. feds still purchasing boat load of treasuries. if they don't have confidence in our economy without training wheels, how are we supposed to? part b is easy. time heals all wounds despite the programs that outlived usefulness. i'm optimistic. i don't know if the pace of jobs will continue. i'm very optimistic especially on a relative basis. european banks are a big negative story for the beginning of 2014. >> no one is talking about that at this point. we're talking about volcker

tougher than people thought right? >> once again, i have no problems with recreating the glass steeple in modern day terms. micro managing of some issues -- hedging is important. it would be bad for them to impoo ed the process. october trade balance is a deficit of 40.6 billion. extremely close to expectations. last month ramped up a bigger red tape from originally released 41.8 to 43 billion. how does 46 fit in? not going to change the recent range. august 38 and change and been as high this year in the 43 area just like the revision last month. it still isn't negative news. foreign exchange is going to be a big gi.

japanese will reintroduce a new r generation. watch the currency as we strengthen exports. it's going to be a big issue along with european banks next year. >> thank you rick. see you later buddy. >> see you later joe. the the brightest minds leading to charge the disrupt, innovate, reimagine the way we learn. our next guest gave up tenor. he found google x. thank you for being here today. >> it's great. >> let's talk about how you struck out from stanford on your own to start this project. you were tenor there, had a great gig. you did an experiment in 2011

you put a class online, offered artificial intelligence. who showed up to do that class? >> we sent e-mail this class is available online free of charge. we expected maybe 500 students to show up which is a lot compared to 200 only campus. to my complete surprise we got 160,000 students to show up. >> what did that tell you? >> there's a huge demand and huge need, thirst and hunger for learning new things. i thought of artificial intelligence something few people need. in fact the the specific class brought 23,000 students to the end which is more than all professors in the world teach combined in artificial intelligence. it shows me an enormous wish for people to be educated around the world. >> you left the tenor position

at stanford which speaks volumes for how much you believer in this. how many courses like this can you offer is this. >> you can learn things focussing on technology and computer science, being computer literate and so on to go and learn about big data or about how to do stuff on the web. you learn this online. go there, sign up and take a class. some of our classes are free. we also offer services such as mentoring, coaching and examination. you work with google and facebook to put their materials online. we get from them the most up to date, cutting edge stuff you need to know to be successful in the career of tech. you can learn this stuff. facebook teaches internally to it's engineers. so if you as a person want to be proficient in big data, go and

sign up. >> does this replace a college degree or someone in the work place can use to add on a constant life learning, learning, learning? >> we think of it like a letter like continued learning, life long learning, staying up to date. our data suggests that too. very few come to us straight out of college or in college. most come to us, young professionals that want to understand the latest and best in technology. things turn over so quickly. even if you're out five years out of college, you probably don't know what's going on. new system, new lang -- new languages. >> if you're interested in diploma or certification do you have a process to a ward a student evidence of completion? >> absolutely yes.

we formed an appliance with leading employers in the bay area such as google and many others, and at&t. those together put together an alliance. they said we believe in certificates. we believe students can use this in applying for jobs or getting promoted. we're work with georgia tech, top ten computer science department. they put a masters degree online. many universities do that. the shocking thing is rather than charging $45,000 they charge $6,000 for it. >> we can reach people who haven't been reached before.

we work with georgia tech on the masses program. it normally attracts foreigners. it's a fantastic way for people in india, china and other places to get in the country, get a visa and stay here. when you open up online, the visa thing went away. you can do it at home. as a result we got record numbers of applications, over 2,000. almost all from homeland. most were u.s. citizens or green card holders. we're now reaching the sector of the population that's never been reached before. >> again, you're reaching a segment of the population never reached before, but my guess as people pick up and learn about it, why in the world would i pay $45,000 for this when i can get it $6,000? >> i want to make it affordable price to everybody.

we focus on job skills that we have in this country and nationwide. i think it's really important to do this. in this country alone, we have 2 to 3 million jobs in technology people can apply for. 60% of all graduates are not equipped to take these jobs. we want to focus on that skills gap. >> how quickly will that gap be addressed? that skills gap is a massive problem. we talk about it here and look at it as a huge structural problem. it can take decades to wipe a way? >> it's a massive problem that's going to grow in importance. we saw the recent recession, we lost 6% of jobs. they won't come back for a while if ever. we have to work on it. i don't have a magic wand to make the skills problem go away. the nice thing about this, it

scales. whether we have 10 students in the class or 10,000, makes no difference. they can come any time and learn any moment. >> michael dell told us a year or two ago they had computer and i.t. jobs saying they couldn't fill. they would get 10,000 or 12,000 people show up for 100 jobs or something. that's a cognizant view of what the skills gap means here. >> it's real. you might look at numbers and say we have 50% unemployment rate in europe, spain, greece. people affect add it's 100%, no income. a lot of it is education. in this day and age where technology is progressing so rapidly, we think one time qualification is significant. people pick about seven careers.

the average time to i stay in a job is four years and one month, record low. compare to a few generations ago, i would havie picked the same job as my grandfather. that is really changing and puts pressure on people to stay up to date. >> it's fascinating look at how we should be doing things. we'll be watching. hope you come back soon. >> thank you so much for having me. coming up, we're going to roll out the red carpet for a hollywood legend. i can't do it. fame film maker shyamalan on his latest project. it has nothing to do with winning an oscar. we'll look at how he plans to change education and his book when we return on "squawk box" every day we're working to be an even better company -

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. welcome back to "squawk box" everyone. we've been watching futures. after three down days they could start on another down day. s&p 500 futures off by over five. we've been watching shares of express, missing the mark by 2 cents. express is cutting full year view on thanksgiving sales miss. that is really impacting that

stock. down by 19% this morning. >> best known for his films sixth sense and unbreakable. our next guest says seeing disparity in two public schools in philadelphia he thought it was time to educate himself on the education system in the the u.s. a book took a long time in the making and data. joining us now film maker shyamalan. he's the author of the book "i got schooled." i've seen you talk about it. i can't say it. i can't say, i see dead people. >> you just did. >> i'm not going to say it. everyone always says it and thinks it's funny and they're not. in a nutshell, in making movie and scouting the set, you were intrigued by the the difference

in two different public schools in term of whether students even knew who you were. >> we went to one amazing public high school. we went in the van and went to a second one that was so opposite. guards, metal detectors, kids had faces down. bars on every classroom door they had to unlock. it was a dark situation. it was upsetting and it got me wondering what the differences are between the two public high schools in philadelphia. >> you did an analytical data driven study to try and figure out how to close the the gap. >> i wanted more than anybody not to have an opinion because of the heated subject as you know. i basically spent two years accumulating all the research about every subject you've ever heard of. classroom size, voucher, this,

that. put it on the table and see if it made sense. no one seemed to have it all in one place. as a parent, we had our researchers do that two years. >> i've seen you talk about it an hour. you said i don't want to be tripe, but i only have an hour. we really need to be tripe. class size is hard to core relate. if you have a crappy teacher in a class of ten, the 40 is better. >> you can cherry pick anything you want. when you look at hundreds of studies done on a subject like classroom size, you can get the real details of what's happening. >> you found five things that you could say are analytically

true to close the gap. >> the pile was messy until i looked at it paradigm. all my family are doctors. i'm the only actor. in the health model they literally can prove to you if you do five things together, sleep eight hours a day, eat a balanced day, exercise three times a week, don't smoke and have attention to mental health, yourens which as of getting all diseases drop to an incredibly low level. if you don't do one of the things it goes back to norm. if you smoke and do everything else, you are unhealthy and unbalanced. looking at the material through the medical model you could see the five miles immerge. the mush of the pile was clear if you do five things together,

it always works to close the achievement gap. it started to make -- took two years to make the piles. we started looking at the schools closing the gap. low and behold they were doing the five things. >> what are the five things? >> they're hard to start throwing out headlines. >> the teachers unions are getting mad but you're not bashing them. >> not at all. if you pick two side, teachers union and ed reform which is ridiculous, those are the two sides. some support one side of stuff and not a lot of the other stuff. there's two circles overlapping. that's been proch. >> i sa -- been proven. >> in a small way if you knew the information like a parent, someone who knows nothing about this field and a parent down in

the inner city, they should have the information to go, there's a classroom with 30 kids and a great teacher and 11 kids and an okay teacher, where do you put your kid? it's a no brainer, the 31st kid. >> how do you know what's a good teacher? >> it has to be done over three years doing three measures. correlate all these things. there was a study fbi gates foundation that worked on how to evaluate teachers on the three prong approach. it's never perfect but getting close when all three vevaluator correlate on all three things. >> you know one of the things is

how important the lieaders are n the schools. the research supports a great principal spends 80% of time teaching teachers. the principal is going in and out of the classroom saying if we were all teachers, i come in and say you need to call on sara a little more, use your voice, do this for this subject. just keep getting evaluating and practices keep getting passed on. >> you see the huge continuum between a crappy or good principal. >> research supports the idea principals do certain things not necessarily they were born through certain things. >> how many of the next three can we get through in a couple of minutes you think is this. >> on the principal leader one.

think actually show culture they create is to important to close the education gap. >> that goes to the school size doesn't it? >> right. that directly is connected with school >> right. that's directly connected with school size. that's like not smoking and doing everything terribly and saying i'm healthy because i'm not smoking. the school size making it smaller tush oaf charges all these other ones that i'm talking about here, makes it possible for a teacher to go into every classroom. >> for a principal to lead and influence. >> and to have data with all of this stuff. >> what's the next one we can do in 30 seconds? >> basically i call it the feedback. yes, you're going to give the scores about johnny but you're going to give little johnny scores 16 times a year and say you need to work on this. >> instead of six times.

>> or how about the end of the year which is useless. and feedback on best practices. all of these tenets are intended to make it plausible that 98% of the teachers we have can close the achievement gap. >> the number 16, you didn't make it up? >> no. >> it's 16. >> there's always the tipping points in the data, if i give you the information 11 times a year, it has a moderate effect. when it kicks over, you get a clarity of the individual. it's all about levels of intensity. >> two more. we might be able to get them. i know it's trite but this is wo working. >> the one we haven't talked about which was really surprising was the extended day, the extended hours. any way that you can elbow out the school, meaning if you can start the kids earlier when they're younger in early

childhood, definitive wins, you hold them later at the end of the day, definitive ones and the giant one is the summer one. if you can extend into summer or get them in the summer, two-thirds of the entire gap between low income, african-american and hispanic kids and their white suburban counterparts, what thirds of that gap is made during the summer. >> and there's other things that just in terms of making african-american kids feel after all the years of whatever happened in history, to make them feel you can do this, can you do this, you are worthwhile. that's part of the problem because some of the kids, white kids, in the urban schools do as well as some of. kids in norway, right? >> what you're referring to is the fact that if you pulled out just the low-income urban schools, just pulled that out and looked at all the rest of the public schools of the united states versus the world, we lead the world.

if you just pulled out that group that i just talked about which happened to be almost entirely african-american and hispanic, you pull them out. finland, they teach their white kids really, really well and we teach our white kids better. that's the reality. it's always been this way. we built this country on this particular sin of slavery and this is the residual effects of that. there's no way around that. you have to be incredibly aggressive about it. it's not a casual task. >> this is great, you're going to do it. >> it's an intensitntensity, wh get out of the classroom, it's being whispered now instead of yelled. >> we did get it all in. >> nicely done. >> you got read the book to see the rest of it. thank you very much. i got schooled. >> thank you for doing it. >> when we come back, was the death of the magazine business

greatly exaggerated? we'll talk about why "newsweek" says it plans to return to print. "squawk box" will be right back. ♪ [ engine revs ] ♪ ♪ [ male announcer ] the mercedes-benz winter event is back, with the perfect vehicle that's just right for you, no matter which list you're on. [ santa ] ho, ho, ho, ho! [ male announcer ] get the all-new 2014 cla250 starting at just $29,900.

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our guest host today has been turn around specialist jim millstein. it's been a pleasure having you here. will you come back again? >> i will. ♪ every time it rains it rains pennies from heaven ♪ >> second straight month of positive comps. good wednesday morning, i'm carl quintanilla, jim cramer and david faber. futures negative this morning. part of the reason is this, the 10-year yield at 2.84, the highest since the middle of september. and european stocks are off as well. crude oil back to 97. we've no